Value Management and Value Engineering Training
Value Management (VM) and Value Engineering (VE) are often thought of as conduits in Value for Money (VfM) metrics, especially in construction.
Value for Money in construction is the optimum balance between managing costs without compromising on quality.
Two of the most essential functions of VfM are Value Management and Value Engineering. While similar in their aims, there are fundamental differences between them.
Value Management is a method of highlighting possible opportunities to create value within a project and subsequently managing those solutions to ensure value is continuously delivered.
Value Management encompasses the whole life cycle of a project, from design to completion and beyond. The process is undertaken in collaboration with the project team, understanding and managing the balance between cost, time and performance.
A very important benefit of Value Management is that it gives each and every project a clear path to create value through the understanding of client objectives as well as the needs and wants of the stakeholders.
Value Management also encourages creativeness within the project team as well as nurtures an environment from which innovation can be developed and imaginative solutions can be implemented.
Value Engineering, on the other hand, is a method used to eliminate any unnecessary costs, in order to achieve value for money on a project. VE methods and techniques can be used throughout the life cycle of a project, from strategic definition (very early design) to handover and close out.
Value Engineering can also be associated with maximizing value, not just reducing costs. VE examines key solutions to extract any unwanted waste, such as water, energy, time, maintenance etc., and reduce life cycle costs whilst providing better function, quality and sustainability.
Value Management is applied at the Concept Development stage of a project to ensure all stakeholders’ expectations and objectives are aligned, especially with respect to scope. Value Engineering is applied as soon as a preferred option is agreed and at the Detailed Design stage.
Some key considerations for VM studies are:
- A prescribed VM work plan developed before the collaborative, consensus driven, facilitated workshop.
- The mix of the workshop members in terms of technical expertise, experience and relevant creative and decision making ability.
- Selection of an effective facilitator well versed in the VM methodology.
- Key stakeholder and senior management commitment to the VM process.
Value engineering begins by analyzing what a product lifecycle will look like. This includes a forecast of all the spending and processes related to manufacturing, selling, and distributing a product.
Value Management and Value Engineering Training by Tonex
Value Management and Value Engineering training course provides participants with techniques for re-examining projects with a view to reducing total project costs.
Value Management and Value Engineering training course introduces the concepts of value management and value engineering in relation to system and capability acquisition projects.
Value in this context is the ratio between benefit (outputs) and the cost or effort (inputs) required to achieve it. Value management (VM) and value engineering (VE) are both concerned with increasing this ratio, but are often separated in terms of their timing and their scale. Where concepts and ideas are applicable to both value management and value engineering, this will be explained in the text, as will areas where the two diverge.
The course includes an overview of value engineering/value management (VE/VM) concepts, principles, and definitions, and focuses on the use of tools and techniques to improve project and program cost and schedule results, especially Return on Investment (ROI).
This course also teaches skills for organizing a VM effort, structuring a job plan, and analyzing the functions of systems, equipment, facilities and supplies to achieve the lowest life-cycle costs while maintaining the essential values of safety, performance, reliability, and quality.
The course applies current VE/VM practices that emphasize good communications and effective leadership.
- VE/VM concepts, principles, definitions, and legal/regulatory drivers
- Value management process
- The benefits of VE and VEM to projects and delivery teams
- A comparison of the features of VE and VM
- Relationship to other project management activities
- Practical application: How and when to carry out VE and VM
- Determining the value criteria and KPIs for a project
- Prioritizing and weighting alternative technical solutions and resources
- Potential problems when carrying out VE and VM
- Designing large-scale VE.VM programs
- 6-step value management job plan
- Team composition and leadership